U.S. natural gas inventories increased near the five-year average (2017-2021), as the storage charging season came to an end.
A report published by Energy information management Today, Friday, November 18, the United States announced that America’s natural gas reserves totaled 3.644 trillion cubic feet by the end of the week ending November 11, 2022, an increase of 4 billion cubic feet over the same period of 2021.
While U.S. natural gas inventories were 7 billion cubic feet below their 5-year average, which is the lowest deficit during the comparison period since January 2022, according to the report I reviewed. Energy Research Unit.
Reasons for high gas inventories
Refills increased in the last weeks of the injection season (replenishment of storage facilities) (April to October); What drove stocks close to their historical average?
In a previous report, the Energy Information Administration pointed to an increase in facility replenishment Storage of natural gas In September and October the deficit will decrease compared to the five-year average, from 11% at the end of August to 4% until the end of October.
This happened with the support of two main factors; The former has outpaced production growth Natural gas Dry US domestic consumption plus exports.
The second is closing Free port station of liquefied natural gas after a fire last June; This has led to a decrease in exports.
The start of the supply season
At the start of the storage facility recharge season on April 1, U.S. natural gas inventories were 17 percent below the five-year average, or 285 billion cubic feet.
The net supply of gas storage facilities, or the difference between withdrawal and fill, fell below the five-year average for most of the following weeks; That pushed the shortfall to 367 bcf on a 5-year average during the week ending Aug. 12 amid rising temperatures and growing demand for cooling.
However, it has increased Production of dry gas During the summer and temperatures moderated from September 9 to a rapid change in natural gas storage balance, to exceed the previous 5-year weekly net injection averages within 8 of the following 9 weeks.
End of season top up
At the end of the storage facility recharge season on Oct. 31, natural gas inventories were 3% lower than last year’s average and the 5-year average.
Injections reached 2.15 trillion cubic feet by season’s end, 16 percent higher than a year ago and 9 percent higher than the five-year average; What reduced the deficit.
Although the end of the supply season is October 31st; effective end is mid-November; Because the infusion generally lasts during the first few weeks of the heating season.
Moderate temperatures during the first two weeks of November contributed to the continuation of injections at an above-average rate.
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